JPMorgan Chase has agreed to pay $448 million to US regulators for failing to properly monitor billions of transactions on its global trading platforms.
Enforcement Actions
The banking giant has reached a deal with an unnamed regulator for an additional $100 million penalty. This comes on top of a $348 million enforcement action by the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board (FRB) in March.
Monitoring Gaps
Regulators accused JPMorgan of having significant gaps in its trade surveillance program. The bank failed to adequately monitor traders and clients for potential market misconduct on at least 30 global trading venues.
Self-Identified Deficiencies
JPMorgan admitted that it failed to ensure that certain trading data was being fed into its surveillance platforms. The bank has since committed to improving the reliability of its trading infrastructure and maintaining stricter controls.
Costly Mistakes
According to the Violation Tracker database, JPMorgan has paid nearly $40 billion since 2000 for enforcement actions and lawsuits related to various misconduct. Despite earning $49.6 billion in net income last year, the bank’s monitoring lapses have proven costly.
